Copper steady as record European premiums signal supply strain

what happened

Copper was little changed on Wednesday, even as European buyers were quoted record premiums for next year's deliveries, Reuters said. Codelco has offered $350 per metric ton for 2027 shipments, up from $325 for 2026, while Germany's Aurubis raised its premium by about 10% to a high of $347. Both moves came during LME Week in London.

Three-month copper on the London Metal Exchange gained 0.14% to $14,440 a ton, while the November contract in Shanghai added 0.58% to 109,820 yuan. Tariff concerns keep pulling metal toward the US, where COMEX warehouses hold roughly 70% of global exchange-visible stocks. China's refined copper output rose 1.1% year on year to 1.26 million tons in September, and 3.3% in January-September to 11.28 million tons, official data showed.

why it matters

Premiums paid on top of benchmark LME prices suggest the physical copper market outside the US remains tight, even when futures are calm. A softer dollar supports commodities priced in it by making them cheaper for buyers using other currencies. Other LME metals were mixed, with nickel up 1.77%, tin up 0.47% and aluminium up 0.43%. Of 100 economists polled by Reuters, 94 expect the Fed to hold rates in October, and all of them foresee a December increase.

market impact

Copper: record European premiums point to physical shortages outside the US, supporting the spot market

tags

instruments